Finance

1. 1
Chapter 5
Corporate Governance
អភិបាលកិច្ចសាជីវក

2. Contents
I. Review of Previous Lesson
II. Lesson Objectives
III. Introduction
IV.New Lesson
V. Summary
VI.Key Terms
VII.Discussion Questions
VIII.Homework / Journal Writing

3. I. Review of Previous Lesson
Organizational Ethics
 Ethics in Organizations
 Marketing
 HR
 Sales
 R&D
 Manufacturing….

4. II. Lesson Objectives
1. Explain the term corporate governance
2.Understand the responsibilities of the board of
directors and the major governance committees.
3.Explain the significance of the “King I” and “King II”
reports.
4.Explain the differences between the following two
governance methodologies: “comply or explain” and
“comply or else.”
5.Identify an appropriate corporate governance model
for an organization

5. II. INTRODUCTION
“Earnings can be as pliable
as putty when a charlatan
heads the company
reporting them.”
Warren Buffet

6. Defining Corporate Governance
• The system by which business corporations are
directed and controlled
• Managers accountable to:
• Owners
• Public interest or
stakeholders
ប្រព័ន្ធដែលសាជីវកម្មអាជីវកម្
ម ប្រូវ
បាន្ែឹកនាំន្ិងប្ររ់ប្រង អនក
ប្ររ់ប្រងទទួលខុសប្រូវច្ាំព ោះ:
ម្ច
ច ស់ ផលប្រពោជន្៍សាធារណៈឬ
ភារី ក់ព័ន្ធ

7. What Does Corporate Governance Look Like?
• Owners ម្ច
ច ស់
• Board of Directors ប្ក ុម្ប្រឹកាភិបាល
• Audit Committee រណៈកម្ច
ម ធិការ សវន្កម្ម
• Compensation Committee រណៈកម្ច
ម ធិការ
សាំណង
រណៈកម្ច
ម ធិការអភិបាលកិច្ចសាជី
វកម្ម
• Corporate Governance Committee

8. Governance of the Modern Corporation

9. Two Governance Methodologies

10. The Chairman and The CEO
• First step in disregarding the corporate governance
model – merge the roles of chief executive officer
(CEO) and chairman of the board into one individual
• In favor of merging – efficiency and conflict minimized
• Opposed to merging – governance needs checks and
balances

11. 22 Questions for Diagnosing Your Board…
7. Do compensation consultants report to your
compensation committee rather than to the
company’s human resources officers?
8. Has your compensation
committee shown the
courage to establish
formulas for CEO compensation
based on long-term results – even if formulas differ
from industry norms?

12. 22 Questions for Diagnosing Your Board…
9. Are the activities of your executive committee
sufficiently contained to prevent the emergence of a
‘two-tier’ board?
10. Do outside directors annually review succession
plans for senior management?
11. Do outside directors formally evaluate your CEO’s
strengths, weaknesses, objectives, personal plans and
performance every year?

13. 22 Questions for Diagnosing Your Board…
12. Does your nominating committee rather than the
CEO direct the search for new board members and
invite candidates to stand for election?
13. Is there a way for outside directors to alter the
meeting agenda set by your CEO?
14. Does the company help directors prepare for
meetings by sending relevant routine information, as
well as analyses of key agendas ahead of time?

14. 22 Questions for Diagnosing Your Board…
18. Does your board, rather than
the incumbent CEO, select the
new chief executive – in fact as
well as in theory?
19. Is at least some of the
director’s pay linked to
corporate performance?

15. The Dangers of a Corporate
Governance Checklist
• ពួកពរក៏ទទួលបាន្ 'អរ
ថ ប្រពោជន្៍' ោ
៉ា ងពប្ច្ើន្ដែលរន្តពកើន្
ព ើង ពៅពពលដែលប្ទពយសម្បរតិររស់ Enron ពកើន្ព ើង។
• រួនទីររស់ពួកពរជានយកប្ក ុម្ហុន្ Enron បាន្ធានពួកពរន្ូវ
ម្ុខរ
ាំ ដណងជានយកសប្ម្ចរ់ប្ក ុម្ហុន្ពផេងពទៀរ ដែលជាកញ្ច រ់
ការងារដែលន្ឹងម្ចន្ពប្រោះថ្ន
ន ក់ ប្រសិន្ពរើពួកពរពប្ជើសពរ ើសសួ រ
សាំណ
ួ រឆ្គងពប្ច្ើន្ពពក ន្ិងទទួលបាន្ពករ តិ៍ព្
ម ោះជាអនករងករញ្ហ
ា ។
• They also enjoyed substantial ‘benefits’ that continued to grow as
Enron’s fortunes grew.
• Their role as directors of Enron, guaranteed them positions as
directors for other companies – a career package that would be
placed in jeopardy if they chose to ask too many awkward
questions and gain reputations as troublemakers.

16. A Strong Responsibility
• Corporate governance
is about managers
fulfilling a fiduciary
responsibility to the
owners of their
companies
• Fiduciary responsibility
- based on trust

17. A Strong Responsibility
- Key Safeguards
• Properly constituted boards
• Separation of the functions
of chairperson and CEO
• Audit committees
• Vigilant shareholders
• Financial reporting and auditing systems

18. Effective Corporate Governance
“រ
ម ន្ប្រព័ន្ធអភិបាលកិច្ចសាជីវកម្ម អាច្ជាភស
ត ុតាងទាំងប្ស ុងប្រឆាំងន្ឹងការដកែង
រន្ែាំ ឬអសម្រថភាពពនោះពទ។ ការពធវើពរសត រឺថ្នពរើភាពខុសឆ្គងដររពន្ោះអាច្ប្រូវ
បាន្ពររាំបាក់ទឹកច្ិរតែល់កប្ម្ិរណា ពហើយថ្នពរើពួកពរអាច្រាំភែឺបាន្ពលឿន្រ៉ាុណ្
ណា។ ហាន្ិភ័យអាច្ប្រូវបាន្ការ់រន្ថយពោយការពធវើឱ្យអនកច្ូលរួម្ក
ន ុងែាំពណើរការ
អភិបាលកិច្ចម្ចន្ទាំន្ួលខុសប្រូវប្រករពោយប្រសិទធភាពតាម្ដែលអាច្ពធវើពៅបា
ន្។ ការការ រសាំខាន្់ៗរឺប្ក ុម្ប្រឹកាដែលប្រូវបាន្រពងកើរព ើងោ
៉ា ងប្រឹម្ប្រូវ ការ
រ
ាំ ដរកម្ុខងារររស់ប្រធាន្ ន្ិងនយកប្ររិររតិ រណៈកម្ច
ម ធិការសវន្កម្ម ម្ច
ច ស់
ភារហុន្ដែលប្រ ុងប្រយ័រន ន្ិងប្រព័ន្ធរបាយការណ៍ហិរញ្ញ វរ
ថ ុ ន្ិងសវន្កម្មដែលផតល់
ន្ូវការរងា
ា ញពពញពលញ ន្ិងទន្់ពពលពវលា។
“No system of corporate governance can be totally proof against fraud or
incompetence. The test is how far such aberrations can be discouraged and how
quickly they can be brought to light. The risks can be reduced by making the
participants in the governance process as effectively accountable as possible. The
key safeguards are properly constituted boards, separation of the functions of
chairman and of chief executive, audit committees, vigilant shareholders, and
financial reporting and auditing systems which provide full and timely disclosure.”

19. Review Questions
1. What is corporate governance?
2. What does the corporate governance look like?
3. What are the two governance methodologies?
4. What makes an effective corporate
governance?
5. Explain strong responsibility of each
management teams.

20. Questions
•What is the meaning of HRM?
•ពរើអវើពៅជាការពរើកររររស់កង
កម្ច
ែ ាំងពរើកររពៅពីពប្កាយ
hrm?
•What are the driving of The Driving Forces
Behind HRM Success?
•ពរើប្ក ុម្ហុន្សាជីវកម្មរឺ

21. VI. Key Terms
1.Audit Committee
2.Board of Directors
3.Compensation Committee
4.“Comply or Else”
5.“Comply or Explain”
6.Corporate Governance

22. Words ular
1-22
1. Perspectives
2. Challenges
3. Beliefs
4. Staff promotion
5. Conflict of
Interest
6. organizational
Culture
7. Auditing Function
8. Staff motivation
9. Human nature
10. Skill focus

23. Questions
1. Define the term business ethics.
2. What’s an organization’s
stakeholders?
3. Why should we learn about business
ethics?
4. What’s an organizational ethics?
5. What are the seven ethical codes?

24. Questions
• 1. ពហរុអវើអនកប្ររ់ប្រងរួរែឹងអាំពី
អាករបកិរ ិោររស់សា
ថ រ័ន្?
• 2. ពហរុអវើបាន្ជាប្ក ុម្ហុន្រួរម្ចន្ប្កម្
សីលធម្៌ក
ន ុង R&D?
• 3. ពរើម្ចន្អវើពកើរព ើងប្រសិន្ពរើសា
ថ រ័ន្
ម្ួយម្ិន្ម្ចន្ប្កម្សីលធម្៌ក
ន ុងការ
ប្ររ់ប្រងហិរញ្ញ វរ
ថ ុ ន្ិងរណពន្យយ?
• 4. ពហរុអវើចាំបាច្់ប្រូវែឹងអាំពីប្កម្សីល
ធម្៌ក
ន ុងទីផារ ន្ិងការផាយ ណិជជ
1. Why should a manager know about organizational behaviors?
2. Why should a company have ethics in R&D?
3. What happens if one organization unethical in Finance and Accounting
management?
4. Why is important to know about ethics in marketing and advertising?

25. VII. Homework
• Please write a reflection on your journal book(
about what you learned in this lesson).